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CGMA
COMPETENCY FRAMEWORK
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Two of the worlds most prestigious accounting bodies, the AICPA
and CIMA, have formed a joint venture to establish the Chartered
Global Management Accountant (CGMA) designation to elevate the
profession of management accounting. The designation recognises the
most talented and committed management accountants with the
discipline and skill to drive strong business performance.
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1CONTENTS
About the CGMA Competency Framework 2
The development of the CGMA Competency Framework 2
Competencies for finance professionals 5
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2The Development of the CGMA Competency FrameworkThe CGMA
Competency Framework was developed through three phases of
research: face-to-face interviews, roundtables and an online
survey. The participants ranged from finance and non-f inance staff
in mid- to senior-levels, covering diverse industries from both the
private and public sectors. A total of 67 organisations from
Malaysia,
South Africa, the United Kingdom and the United States
participated in the face-to-face interviews. The roundtables were
held in 13 countries from Asia, Europe, Africa and the Americas.
The online survey was taken by nearly 3,400 CIMA members, student
participants and academics. The f indings of the f irst and second
phases were validated and extended in subsequent phases. This
approach was used to ensure the rigour of the research and thus
enhance its credibility and relevance. Lastly, the online
survey
ABOUT THE CGMA COMPETENCY FRAMEWORKThe CGMA Competency Framework
is designed to help management accountants and their employers
understand the knowledge requirements and assess the skills needed
for both current and desired roles. The framework is underpinned by
the need for objectivity, integrity and ethical behaviour, and
includes a commitment to continuously acquire new skills and
knowledge.
The CGMA Competency Framework is the foundation that will
demonstrate the relevance and capabilities of a CGMA as a trusted
finance and business strategist.
In the context of the business
And lead withinthe organisation
Apply accountingand finance
skills
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3The framework is composed of four knowledge areas: technical,
business, people and leadership skills. Each knowledge area
includes a series of competencies that are defined at four
proficiency levels: foundational, intermediate, advanced and
expert. Each competency prescribes a series of skill sets to assist
in the CGMA professional development. The relative weight of each
knowledge area relates to the importance of the defined skill sets
at each proficiency level.
The global roundtable participants used in the research phase of
the framework stressed the need for the competencies to be seen as
integrated. The integrated perspective of the competencies has
major implications for the development of the syllabus and
assessment. Participants in all three phases of the research also
aff irmed the need for all the competencies to be underpinned by
ethics, integrity and professionalism.
was an example of qualitative research that is appropriate where
a signif icant body of knowledge exists. It aimed to confirm the
initial f indings by using larger samples and suitable
techniques.
The framework is the underpinning of the CIMA syllabus, which
will be covered in the mandatory CGMA strategic case study exam for
CPAs that will be implemented in 2015. While the framework
highlights the range of skill sets of CGMA professionals, it also
will allow employers to define what is expected in various
functions and roles as well as educators to better prepare students
to become well-grounded management accountants. Competencies are
the bridge between education and employment. Moreover, the
framework supports the concept of lifelong professional learning
and experience.
Proficiency Levels
Skill sets weights by positionFinancial accounting and
reportingCost accounting and management
Business planningManagement reporting and analysis
Corporate finance and treasury managementRisk management and
internal control
Accounting information systemsTax strategy, planning and
compliance
StrategyMarket environment
Process managementBusiness relations
Project managementRegulatory environmentMacroeconomic
analysis
InfluenceNegotiation
Decision-makingCommunication
Collaboration and partnering
Team buildingCoaching and mentoring
Driving performanceMotivating and inspiringChange management
64% 39% 24% 13%
16% 24% 25% 25%
14% 21% 25% 23%
6% 16% 26% 39%
TECHNICALSKILLS
BUSINESSSKILLS
PEOPLESKILLS
LEADERSHIPSKILLS
CGMA competency framework outline
ETHICS, INTEGRITY AND PROFESSIONALISM
Knowledge areas CompetenciesFoundational
(Staff/Entry Level)Intermediate
(Supervisor/manager)Advanced
(Senior manager)Expert
(Executive/C-Suite)
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4Proficiency levels Each competency can be performed at four
levels of proficiency. In some cases the proficiency levels are
linked to levels of the organisations hierarchy.
Foundational (Staff/Entry level) This is responsible for
achieving results through own actions rather than through
others.
Intermediate (Supervisor/manager) This has limited or informal
responsibility for colleagues and/or needs to consider broader
approaches or consequences.
Advanced (Senior manager) This has formal responsibility for
colleagues and their actions; and that their decisions have a wider
impact.
Expert (Executive/C-Suite) This has formal responsibility for
business areas and his/her actions and decisions have a high-level
strategic impact.
Skill sets weights The skill sets weights indicate the relative
importance of each knowledge area for a given level. The research
included the rating and analysis of the competencies at any given
level using a 100-points based system. The more important
competencies are rated with higher number of points. The results
indicated that the importance of the technical skills is very high
at the foundational level but reduces as finance professionals move
up their career. The importance of the other skills increases up to
the advanced level and stays the same with business skills and
people skills but increases with leadership skills.
Knowledge areas Technical skills enable f inance professionals
to collect, store, process and analyse information to be shared
with various stakeholders. These include the preparation and
dissemination of external and internal reports per the professional
accounting standards.
Business skills enable f inance professionals to use their
knowledge of the business and its environment to transform data
into insight that enables organisations to evaluate their strategic
positioning, the alignment of their business models to their
strategies, their performance and opportunities for the future.
People skills, particularly in communication, are used to inf
luence the decisions, actions and behaviours of decision-makers and
others throughout the organisation and its stakeholders.
Leadership skills take place at various levels. Three types of
leadership can be identif ied as peer, functional and strategic.
Peer leadership involves leading peers in and out of the f inance
function on issues that require an understanding of the f inancial
implications of events and issues in the organisations internal and
external operating environments. Functional leadership refers to
the leadership that ensures that the f inance function delivers its
objectives to the organisation. It takes place from the
intermediate level onward, but mostly at the advanced level.
Strategic leadership is exercised at the strategic level. Experts
join with leaders in other functional areas to define, formulate
and oversee the implementation of the organisations strategy.
Competencies The competencies are functions that are relevant to
each knowledge area. For example, f inancial accounting and
reporting is a pillar under technical skills. Project management is
an important function under business skills.
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5systems of record to process and record transactions and to
provide basic reporting requires accounting and finance, IT and
process management skills. Using systems of engagement planning and
control preparing and communicating management information,
external reporting and other services such as internal audit,
treasury, corporate f inance and tax management to interact with
and inf luence key stakeholders inside and outside the
organisation. This requires technical accounting and finance, IT
application, process improvement and people skills. Additionally,
CFOs and other senior f inance professionals require leadership
skills to manage the f inance function to enable it to contribute
to the success of the organisation.
Competencies for finance professionals Role of the Finance
Function Finance professionals are expected to: (a) apply
accounting and finance skills; (b) do it in the context of the
business; (c) to inf luence the decisions, actions and behaviours
of others; and (d) lead the organisation at different levels.
Finance and accounting work is the foundation of entry-level
management accounting. Figure 1 shows the types of f inance and
accounting work. Two basic types of accounting work exist: systems
of record and systems of engagement. Using
MANAGING THE FINANCE FUNCTION LEADERSHIP
SYSTEMS OF ENGAGEMENT
SYSTEMS OF RECORD
FINANCE OUTSIDEFINANCE FUNCTIONBusiness analysts,
statisticians
and consultants, etc.
PLANNING & CONTROL
Cost; risk; project; andperformance management
and forecasting
ACCOUNTING OPERATIONSTransaction processing, recording and basic
reporting
MANAGEMENTINFORMATIONAnalysis and insight
EXTERNALREPORTING
Financial controls andstatutory reporting
EXPERT SERVICESInternal audit; tax;
treasury; and mergers and acquisitions, etc
INFORMATIONSYSTEMS
Data capture, integrityand access
Figure 1: Types of finance and accounting work
In some organisations, a percentage of the finance work is
outsourced to other teams, requiring finance professionals to hone
their people skills, including working with diverse teams, managing
conflict and communication.
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In some organisations, f inance professionals have become
business partners. They are embedded in different areas of the
organisation, engage with those outside of f inance more frequently
and seek to inf luence decisions and actions more directly. This
requires a deeper understanding of the organisation, its context,
the remit of its various parts and the ability to communicate
beyond the numbers.
The structure of the finance function The predominant structure
of the f inance function is one in which all f inance work is done
in-house under one department/directorate. However, an emerging
structure used increasingly by large organisations splits the f
inance function into shared services centres (SSCs) and retained f
inance. SSCs are mainly responsible for accounting operations. They
can be in- house, outsourced, off-shore or on-shore. Retained f
inance is responsible for aspects of f inance relating to the
systems of engagement. Irrespective of structure, there is an
increasing use of technology by the f inance function.
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about obtaining permission to use this material in any other
manner, please email [email protected] All other rights are hereby
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The information and any opinions expressed in this material do
not represent official pronouncements of or on behalf of AICPA,
CIMA, the CGMA designation or the Association of International
Certified Professional Accountants. This material is offered with
the understanding that it does not
constitute legal, accounting, or other professional services or
advice. If legal advice or other expert assistance is required, the
services of a competent professional should be sought.
The information contained herein is provided to assist the
reader in developing a general understanding of the topics
discussed but no attempt has been made to cover the subjects or
issues exhaustively. While every attempt to verify the timeliness
and accuracy of the information herein as of the date of issuance
has been made, no guarantee is or can be given regarding the
applicability of the information found within to any given set of
facts and circumstances.
2014, Chartered Institute of Management Accountants. All rights
reserved.
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CGMA, CHARTERED GLOBAL MANAGEMENT ACCOUNTANT, and the CGMA logo
are trademarks of the Association of International Certified
Professional Accountants.ASSOCIATION OF INTERNATIONAL
CERTIFIED PROFESSIONAL ACCOUNTANTS and the ASSOCIATION OF
INTERNATIONAL CERTIFIED PROFESSIONAL ACCOUNTANTS logo are
trademarks of the American Institute of Certified Public
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The Chartered Institute of Management Accountants 2014
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April 2014
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